Like most retirees, I'm concerned about the rapidly increasing cost of my health care. I think about it a lot because even with good medical coverage, last year I spent over 15% of my net retirement income on medical expenses!
As a former Federal employee, my best retirement benefit was continued medical insurance. I still pay monthly premiums but I just recently found out that our retiree's union is working on a Federal Bill that would allow me to pay my medical premiums with pre-tax dollars.
I'm really excited about that as it would be a considerable savings for me. If the Bill passes, then the monthly amount I pay in premiums would not be included in my pension for income tax purposes.
You should do whatever it takes to keep yourself covered and continue to explore ways to reduce your monthly medical premiums.
So, to find out if you might have the same option:
1. Determine who pays your pension -- is it the company you worked for or was it turned over to a pension payout company?
2. Contact the payer -- there should be a point of contact number in your retirement package or on your monthly statement. Call them and find out if there's a way for you to pay your premiums with "pre-tax dollars".
3. Check out new plans -- Also, ask them if they have added any new Health Care Plans that may offer you comparable or better benefits for the same premium.
If your not satisfied with your current medical plan, you can get quotes from several companies at: http://www.healthinsurancesort.com/ppc/individual-health-plansD.htm?gclid=CJPJ-MbTiZoCFQkzawodARm9FA
I love it when I can figure out a way to cut my monthly expenses, because I feel it's just the same as getting an increase in my pension!
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